Lucara's First Online Karowe Auction Nets $6M

RAPAPORT... Lucara Diamond Corp.'s first sale of Karowe diamonds through its new online auction system ‎fetched $5.64 million. The company reported that 26,196 carats sold for an average price of ‎‎$215 per carat and that sale was 86 percent sold by lot.

A top lot included a 25.90-carat diamond, which achieved $130,070, or $5,022 per ‎carat.‎

‎"With the first sale of Karowe production Lucara has achieved the final milestone in its ‎transition to an operating company," said Lucara's president ‎William Lamb. ‎

Lamb noted that the sale was a direct reflection of the current status of global markets since ‎not all the diamonds on offer were sold. However, he maintained that the company remains ‎extremely bullish about the overall market outlook overall. "Our new Karowe mine produces ‎high quality diamonds and we can expect to always see steady demand regardless of the cycle ‎the market is in," Lamb added.‎

The company reported that its progress into full production is making good progress with a main ‎focus on early development of the mine dewatering systems. The weathered nature of the ‎ore being processed requires more water than anticipated during the initial project evaluation, ‎Lucara explained. Plans are currently underway to advance the installation of additional pumps ‎to ensure sustainable water provision to support ramp up activities which are expected to ‎continue into the third quarter.‎

At the end of May 2012, Lucara had recovered over 33,500 carats from 85,000 tonnes of ore ‎processed at Karowe.‎